28 Aug

John Charcol: Variable rates market share more than doubles in July

John Charcol: Variable rates market share more than doubles in July

John Charcol's tracker and discount share of the mortgage market was up to 35 per cent in July, from 17 per cent in June, according to the firm.

The John Charcol Index, the monthly mortgage activity monitor from the independent mortgage adviser, reported that following the recent steep rise in the cost of fixed-rate mortgages, the sheen has gone off them, while variable rate deals appear to be thriving.

Spokesperson Ray Boulger, who the company describes as a widely-renowned mortgage "guru", said that variable rate uptake more than doubled as a result of the rapid increases in the cost of fixed rates during June, which eroded their value in insuring against future interest rate increases.

"In July we advised more clients to take a tracker or discount rate," he said.

"A modest increase in the availability of tracker and discount rates above 75 per cent loan-to-value also facilitated the move away from fixed rates."

ADNFCR-1222-ID-19337157-ADNFCR

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